SoFi's red-hot stock drops after plan to raise $1.5 billion in stock offering

By Mike Murphy

SoFi Technologies headquarters in San Francisco.

Shares of SoFi Technologies Inc. sank more than 6% in after-hours trading Thursday, after the fintech company announced plans for a $1.5 billion stock offering.

In a statement, San Francisco-based SoFi said it plans to use the proceeds for general corporate purposes, "including but not limited to enhancing capital position, increasing optionality and enabling further efficiency of capital management, and funding incremental growth and business opportunities."

After closing Thursday at $29.60, the stock (SOFI) fell 6.2% in the extended session, as investors cashed out gains before the value of their stakes was diluted by the offering.

Bloomberg News reported the offering would sell shares for $27.50 to $28.50 each, a roughly 7% discount from Thursday's closing price.

SoFi stock has soared more than 92% year to date, giving the company a market cap of around $35 billion. In its third-quarter earnings report in October, SoFi boasted a record increase in new customers and smashed analysts' expectations for adjusted net revenue and earnings per share.

Last month, SoFi announced the rollout of a new feature allowing its customers to trade cryptocurrency.

-Mike Murphy

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

12-04-25 2231ET